No, It Isn’t Time To Buy Yet

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There was a great entry on Dr Housing Bubble Blog this week on why it’s not time to buy yet in “banana republic housing areas” like Los Angeles. It’s a great overall analysis of why it’s not smart to buy in L.A. right now…and why the rental market will start getting tighter as all the people losing their mortgages become, again, renters.

It’s not exactly news, but the Dr. does a good job reviewing all the arguments against buying. For those of us who have non-L.A. based parents that keep asking why we are not buying a home when we get married, this is the article to clip and send home. Go here to read the article in full.

One Reply to “No, It Isn’t Time To Buy Yet”

  1. Good article and am so glad I bought when I did ages ago.

    For those on the fence here is a little tidbit. In LA county the bottom is expected first quarter 2008. Some of the further reaches of LA county maybe 3rd quarter 2008 (further reaches means P’dale and the AV area).

    The info is from my wife who now works in the REO division for her company. Sadly they expect foreclosures in the IE in particular to continue to increase for at least another year which will drive prices in that market down.

    What we need is some incentives to get people into existing housing stock such as first time buyer programs, maybe some tax break for a period to get the property rehabbed and to neighborhood standards, or better if a depressed area. Makes sense to give a bunch of people a chance at homeownership where they can build some sweat equity. Will also help bring neighborhoods back to live instead of having vacant foreclosures sitting around.

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